Another case of robbing private sector to pay public
Those imposing the cutbacks need to check their own moral compass and share the pain, writes James Fitzsimons
Published 27/11/2011 | 05:00
The public-sector pension bill could reach €3bn this year. It has nearly doubled in the last five years. Recent pension reforms affect only new recruits to the public sector. They won't even create a saving for 40 years. If the reforms were not implemented we would have been heading for a pension bill of €5bn annually. Irish public sector pensions are the best pensions in the world.
How is it possible, without saving anything for your retirement, to get a pension that exceeds what you earned when you were at work? This can only happen if you transfer the burden to somebody else. That may be okay if the other person can afford the cost, but breaking point was reached when the burden destroys the other person's financial independence.
It will take more than 25 per cent of earnings to justify what public servants get in pensions. No public servant has ever been asked to pay what it costs. For those in the top jobs, 50 to 100 per cent might be needed to cover the cost. They drove the pay and pensions bill out of control.